Franchise Update Magazine Issue I, 2016 | Page 88

Supplier Spotlight: BY KERRY PIPES CAPITAL RESOURCES Direct Capital offers full spectrum of financing solutions S mart franchise brands—and worked closely with some franchise especially growing franchi- brands to create custom online sees—are always on the look- finance portals that highlight and out for resources that will help them recommend equipment upgrades expand the business. For some, a based on current mandates from healthy business model that gen- the brand. Says Solomon, “We diserates steady revenue and profits tinguish ourselves from fin-tech allows for reinvesting their own competitors and traditional banks capital. For others, external financing plays a key strategic role. Of course there are local and national banks, but specialized third-party lenders have become a much big- primarily through our commitment ger part of the franchising lending to product innovation, where ‘speed landscape. There are a number of and ease’ is our constant mantra.” players in this sector. One of them Beyond sheer growth through is Direct Capital. unit acquisition and Once a small-ticket new build-outs, franlender, Direct Capital chisees also need was acquired by CIT capital to buy equipBank in 2014, which ment, remodel loprovided an infusion cations, handle upof capital that has grades, refinance made the company debt, or establish a a major player and line of credit. Direct source of financing in Capital can handle all franchising. The comthose needs. When pany offers financing offering a loan, the options ranging from company takes into just $2,000 up to $20 account personal and million. And, as a fibusiness credit, the nancial-technology Douglas Solomon experience of the (fin-tech) company, franchisee, and the Direct Capital can get funds in ac- strength of the brand. “We place a tion quickly through its online setup: high value on the brand’s strength, loan application and approval can which often opens the door for franhappen in just minutes. chisees to secure loans they might “We have streamlined a process not have otherwise obtained,” says for franchisees to apply for financing Solomon. anytime, anywhere with our simple online finance center,” explains How it works Direct Capital’s Vice President of All of Direct Capital’s programs have Strategic Relationships Douglas term lengths ranging from 3 months Solomon. The company has also to 7 years. For most transactions, a 86 franchisee can get started with the completion of a simple one-page application, either online or with the help of one of their dedicated franchise account managers. Approvals are typically issued within 24 hours of receiving the request. Once approved, the franchisee is able to choose their term length and finance structure, then sign the finance contracts online right through their smartphone or computer. After the contracts have been signed, the franchisee is able to direct their account manager on how they would like to release the funds; whether their vendor or contractor needs a deposit or full payment, the franchisee controls the entire process. Direct Capital has worked with franchise brands ranging from Denny’s and Dunkin’ Donuts to Choice Hotels International and Wyndham Hotel Group. Working with so many brands, says Solomon, allows the company to keep its finger on the pulse of franchising. “We are currently seeing an increase in store acquisitions where larger multi-unit franchisees are buying out singleunit and low volume multi-unit operators,” he says. He says the future looks good in the QSR, hospitality and printing sectors, and that they typically see a higher demand in the QSR space. “As franchisees demand more services from financing institutions—and are demanding them faster than ever before—our team continues to blaze a trail of innovation,” says Solomon. ■ Franchiseupdate ISS U E I, 2 0 1 6 fu1_supplier_capitaldirect(86-87).indd 86 2/7/16 4:11 PM